Depfa Bank has extended its use of Summit Systems’ software to include additional users and a raft of new instruments, risk management and back office modules.
A client for Summit’s front-office derivatives, fixed income and treasury instrument solutions since 1996, the bank has signed a contract amendment that added 25 users (for a total of over 50) and a broad range of new instruments and utilities.
With a pending split of the bank into two independent legal entities focusing on public sector financing (Depfa Bank plc) and property activities (Aareal Bank AG), the firm also signed a new contract to equip the future property bank with a Summit front-to-back office trading system for a further 40 users. Depfa currently deploys Summit in its two headquarters offices located in Wiesbaden, Germany, and Dublin, Ireland, with additional users in the firm’s London and Tokyo business centers.
The bank uses the software to process vanilla and exotic derivatives, real-time FX trades, money markets, bond securities (including repos and MBS and ABS instruments), equity swaps and options, credit derivatives, FX options, and commercial lending trades. It also exploits optional tools like Summit’s FASB 133 module and Delta/Gamma and Monte Carlo VaR engines.
Under the new agreement, Depfa is to implement Summit’s back-office modules for documentation, settlement and accounting across all instrument types. A Corba-based Credit Risk Server will be used for real-time limit management and control. Connectivity with the bank’s system environment and third-party applications is handled by a middleware layer, which provides real-time linkages to Reuters Dealing 2/3000/EBS, the Bloomberg Trading System, and various in-house systems.
Christian Fahrner, director and dead of IT, Aareal Bank comments: “Summit’s modular platform approach allows us to perform all of the disparate functions associated with today’s front office, back office, and risk management tasks within the context of a single system.”